AfriPulse
The National Pension Commission (PenCom) has raised the minimum capital requirements for Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) to strengthen the pension industry’s financial stability.
The commission disclosed this in a circular signed by its Director of the Surveillance Department, Mr. Saleem Abdulrahman.
The circular was seen by journalists on Saturday.
PenCom said the review was carried out following the Pension Reform Act 2014 and in line with global best practices.
The circular read: “PFAs will now be required to maintain capital levels proportionate to their Assets Under Management (AUM), while PFCs will align their capital thresholds with Assets Under Custody (AUC).
“For PFAs, operators with AUM of N500 billion and above will be required to maintain a minimum of N20 billion, plus one percent of the excess above N500 billion.
“Also, PFAs with AUM below N500 billion are to maintain a capital base of N20 billion.”
The commission added that special-purpose PFAs such as NPF Pensions Limited would require N30 billion, while the Nigerian University Pension Management Company Limited would maintain N20 billion.
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“The minimum capital for new PFA licences was pegged at N20 billion with immediate effect.
“Similarly, the capital requirement for PFCs has been raised from N2 billion, set in 2004, to N25 billion plus 0.1 percent of AUC.
“New PFC licences will also attract a minimum capital requirement of N25 billion.
“PenCom explained that the adjustments were necessary to reflect the exponential growth of pension assets, the increasing complexity of operations, and the need for robust technology, cybersecurity, and improved service delivery,” it added.
The commission gave operators till December 31, 2026, to comply with the new thresholds.
Source: RipplesNigeria | Read the Full Story…
